Microsoft's Windows downloads cost more than boxed OS

 

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By Barry Collins

Posted on 3 Jun 2008 at 15:22

Microsoft is charging up to 40% more for downloads of Windows and Office than leading retailers are charging for boxed versions.

The company launched Microsoft Store yesterday, although it was far from a glorious start for the online shop when Internet Explorer blocked access to it because the site's security certificate was invalid.

Having resolved the embarrassing security blunder, Microsoft will now have to explain to customers why it's charging more for downloads than retailers are charging for boxed versions of exactly the same software.

Windows Vista Home Premium costs £169.99 to download from the Microsoft Store, for example, while Dabs.com charges only £132.45.

Office 2007 Home and Student Edition retails for £99.99 on Microsoft's store, but is priced at only £69.67 on Amazon.co.uk. That's a 40% premium for downloading the software rather than opting for the discs that many buyers prefer, although Microsoft does offer the option of backup media with its downloads.

Microsoft appears to be sticking rigidly to its suggested retail prices, possibly because it doesn't want to upset retailers. The press release for the Microsoft Store made clear that the download store was seen as a complement to "Microsoft's existing, valued, sales channel", and not a replacement.

Microsoft has defended its pricing policy. "The Microsoft Store brings together a wide range of our consumer products for the first time, tailor-made to allow customers to explore and purchase products directly from us through a single, online experience, the company claims in a statement.

"This maximizes ease of use and convenience for the consumer, as well as providing unprecedented levels of interaction with the manufacturer and publisher.

"The price of Microsoft products is determined by the retailer and not by Microsoft, thereby allowing price differences in the market.

"Microsoft Store offers competitive pricing compared to the high street, with the added benefits of quick access to the software and the security of knowing its safely stored online with your licence."